Question
Question No 1: Presented below are selected accounts of Yasunari Kawabata Company on Dec 31, 2019: Cost of goods sold $21,00,000 Inventory [Finished goods] $52,000
Question No 1: Presented below are selected accounts of Yasunari Kawabata Company on Dec 31, 2019:
Cost of goods sold $21,00,000 Inventory [Finished goods] $52,000
Notes Receivable $40,000 Unearned service revenue $90,000
Accounts Receivable $161,000 Equipment $253,000
Inventory [Raw material] $207,000 Inventory [work in process] $34,000
Supplies Expense $60,000 Cash $37,000
Allowance for doubtful accounts $12,000 Equity investment [short term] $31,000
Licences $18,000 Customer advances $36,000
Additional paid in capital $88,000 Restricted cash for plant expansion $50,000
The following additional information is available:
1. Inventories are valued at the lower-of-cost-or market using FIFO.
2. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $50,600.
3. The short-term investments have a fair value of $29,000. (Assume they are trading securities.)
4. The notes receivable are due April 30, 2021, with interest receivable every April 30. The notes bear interest at 6%.
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $50,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $14,000
Requirements: (Marks 12)
Prepare the total assets section of Yasunari Kawabata Companys December 31, 2019, statement of financial position, with appropriate disclosures.
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